The Chinese government plans to introduce a new system requiring foreign firms to disclose secret information about digital household appliances and other products starting from May, sources said Thursday.

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If a company refuses to disclose such information, the Chinese government plans to ban the firm from exporting the product to the Chinese market, as well as bar production and sales in the country, according to the sources.

Critics worry that such a system risks seeing the intellectual property of foreign firms passed onto their Chinese competitors.

In addition, the envisaged system poses security concerns if coding technology used in digital devices developed in other countries is leaked to China, they added.

There already is a serious problem with Communist China complete disregard for IP rights. Giving them access to the source code of every IC based device that is imported to their country is only going to make that worse.